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Tds deduction by bank on fd interest

babugr (dgm) (509 Points)

22 June 2017

Dear Sir,

I have few FDs on which I get quarterly interest and also some pension. I pay taxes as my total taxable income exceeds the exemption limit and do not submit 15 H. When I verified with one of the banks for form 16A surprisingly only 3 quarters TDS was deducted and they did not upload the TDS into the tax system (TRACES). The 26AS reflects an amount less than my total interest paid by the bank. What is to be done for filing IT return. Do I have to say other income as per 26AS or actual. Kindly advise

Thanks

GR Babu

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2 Replies

CA Hariprasad Nayak (Chartered Accountant) (221 Points)
Replied 22 June 2017

Dear Mr. Babu,

Since we are in now in last week of June, almost all deductions as uploaded by the bank should have appeared as credit in your Form 26AS. However, there can be two reasons if it is not currently appearing-'

a. The Bank has not uploaded their TDS return for the last quarter; or

b. They have uploaded with icorrect PAN- which does not belong to you.

If it is case (a) above, you will receive it once they upload their return.

If its case (b) above, they will have to revise their TDS returns for the credits to reflect in your Form 26AS.

Keep following up with the bank for the TDS certificate- they will be forced to upload/ file corrections. You almost have a months time now to file your return in time. Hence, Keep following up- if does not help- write to ombudsmen.

Nothing bars you from claiming the TDS if it is not appearing in Form 26AS (since there is actual deduction from your income). However, word of caution is that since the returns are getting processed very fast (7 days in my case), CPC will not allow you credit if it finds no corresponding credit in Form 26AS.

Hope you found the above useful.

Regards,

CA Hariprasad Nayak

+91 9481 227 467

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babugr (dgm) (509 Points)
Replied 23 June 2017

Thanks for your clear response Shri Hariprasad ji. I evaluated thoroughly the TDS appearing in 26AS vs bank account statement it shows 9797 as per 26AS whereas bank TDS is 10806. Similarly the interest income is shown less in 26AS. The bank manager said they did not upload 1st quarter at all by the previous manager, I wonder how it could be but it is a fact they did not upload for any customer from the branch. I will try to remind the branch manager and lodge a formal complaint to SBI on poor practices / wrong practices followed by their branch. I do not know where it will end.

Thanks again

GR Babu